Trump Recommended to Mull New Tariffs on Steel, Aluminum

February 17, 2018

Washington- The U.S. Commerce Department said Friday it has recommended President Donald Trump to consider imposing new tariffs on steel and aluminum imports from all trade partners, including China and Japan.

The department warned against expanding U.S. imports of steel and aluminum products, saying that the current circumstances "threaten to impair the national security" as defined by Section 232 of the 1962 Trade Expansion Act.

The department asked Trump to consider three options to deal with the situation, including global tariffs of at least 24 pct on steel imports and 7.7 pct on aluminum imports.

The other options are the introduction of new import quota for all trade partners and steep tariffs for China and some other countries that would be accompanied by import quota for the other trade partners.

Trump's administration is concerned that domestic procurement of specialty steel for military use will become difficult if the U.S. industry weakens due to the expanding imports. The global tariffs are apparently designed mainly to block Chinese products imported via other nations.

Based on the recommendation, Trump will consider whether to take punitive trade action. He is set to make a decision on steel by April 11 and aluminum by April 19.

The proposed broad-based actions could spark intense trade disputes if implemented as they are. The recommendation pointed to a need to allow for national security considerations, reflecting concerns about negative effects of punitive measures against U.S. allies.

Section 232, widely viewed as a tool to implement protectionist measures, has not been used since the 1995 establishment of the World Trade Organization. Jiji Press